In order to raise this money, SunEdison will be restructuring old
loans at a much higher rate and issuing a bunch of stock.
Investors' worst fear about the stock is real. SunEdison is
cash poor.

If it wasn't, the company wouldn't have to raise money on terms
that sounds like this (emphasis ours):

The Second Lien Facilities will be comprised of $500
million of A1 loans, and $225 million of A2 loans, each
of which will bear interest at a rate of LIBOR + 10.0% per
annum and will mature on July 2, 2018. Lenders under the
A1 portion of the facilities will receive warrants exercisable at
any time for an aggregate of 19.8 million shares of common stock,
and lenders under the A2 portion of the facilities will receive
warrants exercisable at any time for an aggregate of 8.9 million
shares of common stock, in each case at an exercise price of
$0.01 per share. The Second Lien Facilities will contain
customary covenants, representations and warranties and events of
default.

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Wall Street started selling SunEdison back in July after it
announced that it would acquire a residential solar installer
called Vivint.

Investors hated this for a couple of reasons. First, they
saw SunEdison as a company that did large-scale projects, not one
that stuck solar panels on people's houses.

Second, they hated the deal because, in order to do it,
SunEdison was going to sell a bunch of projects to one of its
subsidiaries: TerraForm Power. TerraForm is one of two of
SunEdison's yieldcos — companies that buy projects from SunEdison
and manage them, collecting payment much like a utility.

Investors thought the assets SunEdison was trying to sell
were overvalued. It was a sign to them that SunEdison needed cash
and was willing to dump on its subsidiary to get it.

"This deal sparked concerns about the quality of underlying cash
flows, the premiums being paid for portfolios, and underlying
discounted cash flow assumptions," UBS said in a note in
December.

Now that the company is raising cash any way it can, investors
are getting a flashback to this summer, so it's a fire sale all
over again.